Hidden Costs in Builder’s Contracts

What are provisional sums in building contracts?

We’re hearing from our clients that some builders are including many Provisional Sum (PC) clauses in their home building contracts. While this is legally acceptable, it’s leaving many home owners out of pocket, and in greater debt.  This is not the CJ Homes way. 

Here’s what you need to know.

What is Provisional Sums?

Provision sum items (PS) are work items the builder cannot provide a definite price for at the time of contract signing; in other words, house and land packages hidden costs. This may include site works, excavation, or labour costs. The builder offers an estimate of the work or products with the final cost to be adjusted once completed. 

Items above the Provisional Sum

Where the cost is above the amount estimated you will be required to cover the difference. This will include the actual cost of the item, the excess, plus a margin of 20% on that excess.  You will be required to make the payment on the next progression invoice.  But, you are within your rights to see evidence of the cost of the item.

Items below the Provisional Sum

In this case, the builder should credit the difference between the actual cost of the item and the allowance to the owner in the next progression payment. Again, you are within your rights to request proof of the expenditure.

Hidden Costs

Some builders will use Provisional Sum clauses to cover price rises. Others will hide the cost of “freebie promotions” in the construction price.  While others may include very basic fittings and fixtures leaving the owner to supply their own or upgrade with hefty margins built-in. This is not our way. 

The CJ Homes Way – Full Transparency – Fixed Priced Guaranteed – Turn Key Solution

From the get-go, you’ll know exactly what you can build, what it includes, and what it will cost.  Our full turn key solution means you won’t need to do a thing. Everything is done for you including fencing and landscaping.

No surprises. No hidden costs.  No fine print or disclaimers.

The CJ Homes Difference – Traditional Builder with Integrity!

We’ll even help you to understand our traditional building process, tailored for each home. Our dedicated team of specialist trades have years of experience and take immense pride in their work. No shortcuts. Only the best materials are used, and the highest standards of craftsmanship are applied to all areas from concreting to painting.

The same applies to our inclusions.  What we consider as “standard” other builders promote as “upgrades”.

Our extensive list of high quality inclusions with multiple style choices for you are provided as part of our standard package. Of course, if you would like something not in our standard range, we can offer you more choice. 

At CJ Homes, we offer you greater choice to suit your lifestyle and budget. Unlike other builders, you’ll know EXACTLY what it will cost before you sign, and before you pay a deposit.

Don’t be fooled. Not all building contracts include the same items. Avoid those with Provisional Sums. We challenge you to find a builder who will offer you the same value, at the same cost, and with the same level of care, as our team at CJ Homes.

Where we build…

CJ Homes builds quality affordable homes to meet our clients lifestyle and budget needs. We offer a wide range of designs to suit all types of blocks including narrow, sloping and irregular shaped blocks. Our Sales Consultants can help you find the right house design to build your ideal home whether you are a first time home owner, or have built homes before.

Looking for house and land? Ask our Sales team about what’s on offer in and around Brisbane, and localities in Moreton (Griffin, Upper Kedron, Narangba, Morayfield) Redland City, Greater Springfield, Logan Village, and the Gold Coast region (Coomera, Helensvale).  And, if you’re moving to Rockhampton or Yeppoon in Central Queensland, or live and work here, we can help with amazing house designs, perfect for acreage living.

Price rises are coming soon, due to supply shortages that are beyond our control.

Don’t waste any more time, contact our team to help you start planning to build your ideal home, your way.

Below are images of one of our recently completed homes in Griffin, north of Brisbane.  Our client choose to upgrade some of the fittings and fixtures, so please note, some of the inclusions are NOT in our standard package.